Personal Budgets and Sales Tax Concept Check

Front

What is a Fixed Expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or insurance.

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What is a Variable Expense?

Back

A variable expense is a cost that can change depending on usage or consumption, such as groceries or entertainment.

Front

What is Income?

Back

Income is the money received for work or services, such as wages or earnings from a job.

Front

What is an Expense?

Back

An expense is the money spent on goods or services.

Front

How do you calculate Sales Tax?

Back

Sales tax is calculated by multiplying the purchase price by the sales tax rate.

Front

If a chair costs $425 and the sales tax is 8.2%, how much is the sales tax?

Back

$34.85

Front

What is the purpose of a Personal Budget?

Back

A personal budget helps individuals plan their income and expenses to manage their finances effectively.

Front

What is the difference between Fixed and Variable Expenses?

Back

Fixed expenses remain constant, while variable expenses fluctuate based on usage.

Front

Give an example of a Fixed Expense.

Back

Health insurance is an example of a fixed expense.

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Give an example of a Variable Expense.

Back

Going to the movies is an example of a variable expense.